Thursday, 25 June 2009

Gov't not worried over new Atcon contract dispute

Gov't not worried over new Atcon contract disputeMiramichi Leader - Miramichi,New Brunswick,CanadaIt emerged last week the dispute over payment, between Atcon and the DehCho Bridge Corporation in the Northwest Territories, had halted work on inthe ...<http://miramichileader.canadaeast.com/news/article/709238>

[excerpt]FREDERICTON - Business New Brunswick is "assured" the contract disputebetween Atcon and the company building a $165-million bridge in the farnorth is being resolved, a spokesman said Monday.

"It's certainly not uncommon, I would say, that this type of a dispute wasto arise in a project of this magnitude," Ryan Donaghy said, although headded the government only became aware of the dispute late last week.

It emerged last week the dispute over payment, between Atcon and the DehCho Bridge Corporation in the Northwest Territories, had halted work on inthe massive bridge being built over the MacKenzie River, on which Atcon isa subcontractor. Donaghy said Business New Brunswick, which recentlyagreed to three loan guarantees worth $50 million for Atcon, was madeaware of the work stoppage only on Thursday.

He said the public-private partnership agreement signed to build thebridge included "very clear" ways to resolve disputes between the Deh ChoBridge Corporation and its contractors.

"They're working through that process now," he said. "In the end, this isan issue between the contractor and their client, and we're assured thatit's being resolved."

However, when asked if the company's government loan guarantee would beaffected if the dispute isn't resolved, he stressed the loan was onlyagreed to "in principle" at this point.

"There is no actual formal agreement, we're working on that right now," hesaid. "Certainly we do have a close eye on this, but it is ourunderstanding that things are being resolved."

Other conditions for the loan guarantee state Atcon has to provide acreditors' list to the province...."

"...Earl Blacklock, a spokesman for the Transportation Department in theNorthwest Territories said the dispute arose sometime in the last coupleof weeks.

He said the territorial government's role is mainly to provide"assistance" in the bridge company's relationship with its variouslenders, leaving the company to take the lead in the event of contractdisputes.

"We meet with the lenders to ensure that they are kept up to what theyrequire for information," he said. "Because we're the guarantor of theloans."

In a statement released yesterday, opposition leader David Alward said itwas troubling how work on the bridge stopped shortly before the loanguarantee was announced.

"The government should have done due diligence and ensured this companywas a good investment for our tax payers' money," he said. "We need to beassured that this company and government can be trusted with such anoutstanding amount."..."